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Peru:. Investment opportunities. March 2011. PERÚ:  UN  CAMPO   FERTIL  PARA   SUS  FOR   YOUR  . PERU:  FERTILE GROUND INVERSIONES INVESTMENT  AGRIBUSINESS SECTOR  Natural greenhouse.  The best agricultural yields in the world. . Sugar cane (1st).  . Asparagus, olives and - PowerPoint PPT Presentation
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Page 1: Peru:
Page 2: Peru:

Peru:Investment opportunities

March 2011

Page 3: Peru:

Sugar cane (1st)

artichokes

Asparagus, olives and(3rd)

Grapes (5th)

Seasonal windows in the most importantmarkets.

Projections expect that the 90,000 hacurrently used for agro exports to double asconsequence of large irrigation projects inportfolio.

Over US$ 2,5 billion in exports of fresh andprocessed products to over 113 countries.

Products with high export value.

PERÚ:  UN  CAMPO    FERTIL  PARA    SUS FOR   YOUR  PERU:  FERTILE GROUND INVERSIONESINVESTMENT 

AGRIBUSINESS SECTOR

Natural greenhouse.The best agricultural yields in the world.

Page 4: Peru:

Agricultural  Exports(US$  million)

AGRIBUSINESS SECTOR

Rest

Prepared asparagus

Fresh asparagus

Source: BCRP, FAO, ADEX DataTrade.

Non-decaffeinated coffee

Fresh grapes

France

United Kingdom

Agricultural  Sector  Exports  per  destination market  (2009)

Germany

United States

Spain

Netherlands

Page 5: Peru:

FISHERIES SECTOR

Extensive fishing coast (3,080km) and “water mirrors” thatoffer adequate conditions forthe development of marine andcontinental aquaculture.

first producer of fishmeal andfish oil in the world.

Distribution of Peruvianfisheries products to over 100countries.

product Trend towardsdiversification.

Page 6: Peru:

Fisheries Exports(US$ million)

FISHERIES SECTOR

1,131 1,123 1,056 1,026

2,2001,626

1,7681,958

2,4132,200

2,000

1,500

3,000

2,500CHICHDExportaciones  Pesqueras

Fisheries Sector  Exports  per  destination market  (2009)

1,000

500

02000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: BCRP, FAO, ADEX DataTrade.

GERMANYOTHER

UNITED KINGDOMBELGIUM

JAPAN

Fisheries

DENMARK

CANADA

TURKEY

Page 7: Peru:

MINING  SECTOR

Polymetallic country, third in gold, silver,copper and zinc reserves.

Only 20% of territory with mining potentialhas been explored.

First silver world producer. In Latin America: 1st gold, zinc, silver, tin

and lead producer. 2 nd copper andmolybdenum producer.

The investment in the sector exceeded US$14 billion between years 1999 and 2009and it is projected an investment of US$ 37billion in the coming years .

Peru is one of the few countries with non‐metallic minerals deposits.

Page 8: Peru:

Mining  Exports(US$  million)

MINING  SECTOR

Mining  Sector  Exports  per   destination market  (2009)

Copper

LeadTin

GoldMolybdenum

SilverIron

OTHEROther

SWITZERLAND

Source: Adex DataTrade, BCRP and MINEM

JAPAN KOREA

ITALY GERMANY BRAZILSPAIN

Page 9: Peru:

TEXTILE  SECTOR

Recognized quality of Peruvian pimacotton, considered one of the mostdemanded and finest fiber in theworld.

First world producer of the finestSouth American camelids fibers:alpaca and vicuna.

Long textile tradition, favorsworkforce professionalization andtraining.

International recognition as “fullpackage” supplier of the best brandsin the world.

Sound trend towards exports growth,reaching its maximum level in 2008:US$ 2 billion.

Page 10: Peru:

Source: Prompex

Textile  Apparel  Exports‐(US$  million)

Apparel  exports  main destination countries  (2009)

TEXTILE  SECTOR

UNITEDSTATES

OTHER

ITALYGERMANY

FRANCE UNITEDKINGDOM2,006

1,495

0

1,500

1,000

500

2,000

2,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

APPAREL TEXTILE

Page 11: Peru:

FORESTRY SECTOR

Presence of great biological diversityand highly valued timber.

Development of hard tropical timberin the forest and soft timber in thehighlands of the country.

2nd country with the largest naturalforest area in Latin America.

78,8 million ha of natural forests, 10million ha for reforestation and otherareas for afforestation (plantations).

Forestry products exports grew toUS$ 296 million in 2009.

inInvestment opportunitiesindustrial timber complexes.

Page 12: Peru:

Timber  exports(US$  million)

Exports  per   country,  2009

FORESTRY SECTOR

250

200

150

Dominican Republic

United

Italy

Canada

Others

Hong kong‐

States

Mexico100

50

02000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Adex DataTrade

Page 13: Peru:

Significant investment in hotels ofinternational recongnition.

Tourism attractions yet to be explored:North Eastern tourism circuit: Kuelap,‐Sipan, Chan Chan, among others.

PERU: TOURIST  DESTINATION   OF   LOCAL   AND  INTERNATIONAL   INVESTMENT

TOURISM  SECTOR

Important cultural destination due to Incaand Pre Inca cultures archaeological sites.‐

Machu Picchu was chosen as one ofthe new 7 Wonders Worldwide.

Diversity of natural landscapes. Destination for bird and orchid watchers. Lima is the gastronomic capital of Latin

America.

Peru has the largest number ofgastronomy schools in the world.

Page 14: Peru:

Tourist  Entry(thousands)

Tourists arrival per  origin region (2009)

TOURISM  SECTOR

998 1070

13491570

17201916

2057 2139

1000

1500

2000

2500

500

0

2002 2003 2004 2005 2006 2007 2008 2009

Source: MINCETUR.

Europe

SouthAmerica

NorthAmerica

Page 15: Peru:

Construction GDP annual average growthfor 2010 is 14.4%.

Housing deficit affects 25% of households. Lima holds 25% of total deficit, and

48% of quantitative deficit.

There are several programs for housingfinancing, based on households’ socio ‐economic conditions and income level:Techo propio, Fondo Mi Vivienda andCommercial Banking.

Mortgage credits grew an average of 25%in the last 4 years; construction creditsgrew 33%.

REAL ESTATE  SECTOR

Page 16: Peru:

DEVELOPMENT   OF  THE REAL STATESECTOR

Source: Ministry of Housing

2,221

2,742

3,697

4,357

248443

621 584

0

1,000

500

3,000

2,500

2,000

1,500

4,000

3,500

4,500

2006 2007 2008 2009

Mortgage credits  and  construction credits  (US$  million)

5,000

Housing deficit(2009)

Qualitative deficit

1,577,43880%

Quantitative deficit

389,71220%

MortgageHipotecariosCráditos credits CréditosConstructionConstrucción para credits

Page 17: Peru:

Why  invest  in  Peru?

Page 18: Peru:

1. Internationally  acknowledged  macroeconomic  stability

WHY  INVEST IN PERU?

2. Friendly investment   environment

3. Open  trade  and market   access   policy

Page 19: Peru:

1. MACROECONOMIC   STABILITY

Peru   will continue  leading  regional  growth.

Source: Central Reserve Bank of Peru. * Projections

Source: IMF

Gross Domestic Product(Annual  %  variation)

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Gross Domestic Product(US$   Million   )

200,000

7.5

7.5

‐5.0

8.8

10.0

Peru

Colombia

Chile

Brasil

Bolivia

Argentina

0.9

0.8

‐1.5

‐0.2

0.9

0.0

Projection 2010

4.7

5.0

4.03.4

5.0

2009

Page 20: Peru:

Private   investment(% GDP)

Balance   of  Trade(US$ Million)

1. MACROECONOMIC   STABILITY

Source : Central Reserve Bank of Peru

*Projections

Source : Central Reserve Bank of Peru

* Projections

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

‐5,000

Total exports Total imports Balance of Trade

25.0

20.0

15.0

10.0

5.0

0.0

Page 21: Peru:

1. MACROECONOMIC   STABILITY

50.0

45.0

40.0

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0.0

Central   government  tax  revenues  (US$ GDP)

18.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

Source: Central Reserve Bank of Peru* Projections

Public Debt(US$ GDP)

Source: Central Reserve Bank of Peru* Projections

Page 22: Peru:

1. MACROECONOMIC   STABILITY

Source: IFM* Projections

Inflation  in  Latin America(Accrued)

Source: Latin Focus Consensus Forecast* Projections

Exchange   Rate   in  Latin America(Index 2000=100)

200.0

190.0

180.0

170.0

160.0

150.0

140.0

130.0

120.0

110.0

100.0

90.0

80.0

70.0

PERU BRAZIL CHILE COLOMBIA

45.0

40.0

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0.0

‐5.0

Argentina

Chile

Bolivia

Colombia

Brazil

Peru

Page 23: Peru:

Country S&P Fitch Moody´s

Chile A+ A A1Mexico   BBB BBB Baa1Peru BBB ‐ BBB‐ Baa3 Brazil BBB‐ BBB‐ Baa3Colombia BB+ BB+ Ba1Venezuela BB ‐ BB+ B2Argentina B‐ RD B3Bolivia B‐ B B2Ecuador CCC+ CCC Caa3

1. MACROECONOMIC   STABILITY

Investment  gradeLatin America  benchmarking

Source : Standard & Poor`s, Fitch Ratings y Moody´s

Net International  Reserves(US$ Million)

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Source : Central Reserve Bank of Peru*Projection

Page 24: Peru:

Peru  offers  a  favorable legal  framework  for   foreign  investment ...

Legal Framework:  Constitutional provisions, “Law for the Promotion of Foreign Investment”, Legislative Decree N° 662, “Framework Law for Private Investment Growth”, Legislative Decree N° 757, “Law for the Promotion of Private Investment in Infrastructure and Public Service Works”, Approved by Supreme Decree N° 059 96 PCM‐ ‐

2. FRIENDLY  INVESTMENT ENVIRONMENT

Non discriminatory treatment. Peru offers to foreign investor the same treatment as local investors.

Unrestrictive access to most economic sectors *

Free transfer of capital

Free competition. Guarantee for Private Property

Freedom to purchase stocks from locals.

Freedom to access internal and external credit.

Freedom to pay royalties.

Network of investments agreements and member of ICSID and MIGA

Peru is adherent to the OECD Declaration on International Investment and Multinational Enterprises.

*Investments that require authorization: Located within 50 km in the border line and those destined to arms, ammunitions and explosive. Likewise, a principal local partner for investments in radio and television as well as in air transport is required.

Page 25: Peru:

INVESTORS

Stability of the right to non discriminatory treatment.

Stability of the Income tax rules applicable to dividends.

Stability to use freely the most favorable exchange rate available in the market.

Stability of the free availability and remittance of foreign currency, dividends and royalties regime.

Requirement : Minimum investment of US$ 5 MM in any economic sectors. US$ 10 MM for hydrocarbon andmining sectors.

Validity: 10 years. Concessions: Term according to the contract ’s life (Max. 60 years).

RECEIVING COMPANY

Stability of the recruitment regimes.

Stability of the regimes for the promotion of exports.

Stability of the Income Tax Regime

2. FRIENDLY  INVESTMENT ENVIRONMENT

LEGAL STABILITY  AGREEMENTSPeruvian Government   guarantees  through  this regime 

Page 26: Peru:

Tax Applicable Rate

INCOME Corporate profits 30%

Agriculture, agribusiness and aquaculture 15%

Dividends 4.10%

Royalties 30%

Interest rate on loans from abroad

4.99%

Value Added  Tax  (VAT) 19%

Financial Transactions  Tax 0.05% throughout 2011

Temporary  to  net  assets, applicable to  the excess  of  S/.  1  000  000  *

0.40%

A  steady  tax  regime:

2. FRIENDLY  INVESTMENT ENVIRONMENT

*Tax applicable up to 2009. The pertaining rate shall be paid in 2010.

Page 27: Peru:

Special  Regime   of  VAT   Anticipated Recovery

BENEFITS

Granting the return of the Value Added Tax during the pre productive stage of the ‐project (minimum 2 year term).‐

Applicable to all sectors of economic activity.

The project can be divided into stages, phases, or similar levels. 

For agricultural activity it is not necessary to meet a minimum investment amount. For other activities the minimum investment amount is US$ 5 million.

2. FRIENDLY  INVESTMENT ENVIRONMENT

Page 28: Peru:

TARIFF  LEVELS ADVALOREM  +  

SURCHARGES

TARIFF  LINES

NUMBER PROPORTION (%)

0  % 4,097 56

6  % 2,489 34

13  % 792 11

Total 7,378 100,0

EFFECTIVE AVERAGE  TARIFF 3.4

STANDARD  DEVIATION 4.1

Reduced   tariff  structure   with  low tariff  dispersion.

Source: MINCETUR – Ministry of Foreign Trade and Tourism

2. FRIENDLY  INVESTMENT ENVIRONMENT

Page 29: Peru:

Position

1

2

Country

Mexico

Peru

3

4

Colombia

Chile

5 Puerto Rico

172

Argentina

115

Uruguay

124

127Bolivia

149

Brazil

Surinam

161

Guyana

100

Peru

36

Chile

43

Venezuela

Colombia

39Ecuador

130

2. FRIENDLY  INVESTMENT ENVIRONMENT

Recognition  of  a favorable   Investment  environmentDue   to its investment  climate  Peru   is the  most attractive   country  in  the  Region

Doing Bussiness  2011

Peru ranks second in the region as an atractive country for investment.

Page 30: Peru:

Source: World Economic Forum, Benchmarking National Attractiveness for Private Investment in LA Infrastructure. 2007

Position123456789

101112

Country

PeruColombiaChileUruguayEl SalvadorBoliviaBrazilDominic. Rep.MexicoGuatemalaVenezuelaArgentina

Points5.85.65.54.84.64.54.24.24.14.03.23.1

Peru is first in the region for

World Economic Forum

*Economc climate indexSource: Foundation of Getulio Vargas de Brasil 2009.

Position123456789

1011

CountryPeruBrazilChileParaguayMéxicoUruguayColombiaEcuadorBoliviaArgentinaVenezuela

ICE*5.04.64.33.93.73.33.22.62.42.01.6

Peru ranks first in the ranking of business climate in Latin America

Peru tops a global macro‐government readiness for private prudential indicator rankinginvestment in infrastructure

Position1689

1011173539

41

51

Country

PeruChinaSwitzerlandFranceNetherlandsMexicoArgentinaBrazilChile

Colombia

Venezuela

Points6.53 5.82 5.70 5.49 5.48 5.43 5.30 4.78 4.66

5.51

3.18

Source: World Economic Forum, The Financial Development Report 2009.

Getulio  Vargas   Foundation

2. FRIENDLY  INVESTMENT ENVIRONMENT

Recognition  of  a Favorable   Investment  climate  

Page 31: Peru:

2. FRIENDLY  INVESTMENT ENVIRONMENT

Recognition  of  a Favorable   Investment  climate. 

United Nations Conference   on  Trade  and Development.

In 2009, Peru was third in FDI growth.

3.2%

28.1%

40.7%

75.5%

Alemania

Source: The Economist 2009.

The Economist

Peru ranks first in the region for bestlegal and regulatory framework

Source: UNCTAD 2009.

Peru

Mexico

Brazil

Italia

Germany

PeruPerú

Dinamarca

Italy

Denmark

Page 32: Peru:

Canada* United States*

Cuba El Salvador

Bolivia Chile*

Ecuador

Australia China*KoreaMalaysiaSingapore*ThailandJapan

Germany

Argentina

Colombia

Paraguay Venezuela

Belgium and LuxemburgDenmarkSpainFinlandFranceNederlandItalyNorwayPortugalUnited KingdomCzech RepublicRomaniaSwedenSwitzerland

2. FRIENDLY  INVESTMENT ENVIRONMENT

Investment  Agreements

Peru has signed Bilateral Investment Treaties (BIT) and Free Trade Agreements that underpinits liberalization policy.

* FTA

It has also signed double taxation agreements with Brazil, Chile and Canada.

Page 33: Peru:

Agreements n force Agreements soon enter into force

3. PREFERENTIAL ACCESS TO THEMOST IMPORTANT MARKETS

An economy working to become globalized and with access to the world’s largest markets and trade blocs.

Agreements under negotiationsTranspacific Partnership Agreements (Vietnam, Brunei, Darussalam, Australia,

Malaysia, New Zeeland, Chile, EEUU, Peru)FTA Central America

Page 34: Peru:

PROJECTS IN PROINVERSION’S PORTFOLIO

Page 35: Peru:

SECTOR N° PROJECTS

ESTIMATED

INVESTMENT(US$ MILLION)

Airports 1 379.0Agriculture 4 750.0Energy 12 5,110.0Penitentiary Facilities 1 17.8

Railways 2 ---Real Estate 3 128.3Ports 8 1,219.6Sanitation 1 160.0Telecommunication 3 ----Tourism 3 830.6Land Transport 6 ---Capital Markets 4 ---Mining 5 ---Total 53 8,595.3

PORTFOLIO PROJECTS  FOR 2011

Projects   in  Proinversion’s  Portfolio53  projects*

Updated: January 27, 2011

33 projectsprioritized for2011…

Page 36: Peru:

Estimated   Investment

379.00

265

350

130

5

Expected dateof  Award

II Q 2011

IV Q 2011

IV Q 2011

IV Q 2011

Jul 2011‐

PORTFOLIO PROJECTS  FOR 2011

Sector  /  Project

AirportInternational Airport of Cusco* Agriculture

Chavimochic project phase 1 – third stage *

Water reinforcement of Pisco River and Seco River Basin *

Developed Choclococha Project *

Sale of Lands Majes (1,000 Has)

* Projects declared of National need and prioritized for 2011.

Page 37: Peru:

NEW  INTERNATIONAL  AIRPORT   OF   CHINCHERO   CUSCO‐

Location: Chinchero District, UrubambaProvince, Cusco region.

Description: The project comprises the design,construction, financing, administration,operation, maintenance and exploitation ofthe new international airport of Chinchero –Cusco (AICC); and the administration andoperation of Alejandro Velasco Astete (AIVA)up to AICC begins operations.•

••

Estimated investment: US$ 379 Million(VAT included)Concession term: 30 yearsModality: Comprehensive Project Bid

Current status: The Tender Documents andcontract ’s second version are published onProInversion’s web site.

Short listing bidders (Submission of EnvelopeN°1): Up to April 15, 2011.

Award date: II Quarter 2011

The Call for Tenderswas made

Page 38: Peru:

CHAVIMOCHIC  PROJECT  (1ST  PHASE  – 3RD  STAGE)

Location: Department of La LibertadDescription: Development of the first phase of the third stage ofChavimochic project to assure the watering for permanentfarming in the valley and inter valleys areas of Chao, Virú andMoche.The concessionaire must build a reservoir (Palo Redondo) of 150MMC of capacity to achieve a regular watering in 60, 000 has.This automation system includes a flow and use of groundwaterin the Chao, Viru and Moche valleys. The concessionaire will beresponsible for the Operation ad Maintenance of the wholesystem.The regional government of La Libertad is carrying outcomplementary works. The investment made in the first andsecond stage border US$ 850 million and currently the regionalgovernment is building civil works for US$ 53 Million.

Estimated investment: US$ 265 Million (first phase of the

third stage)•

Concession type: Co financed.‐

Current process status: Re evaluation of the project engineeringand the cost.Award date: IV Q 2011

TO BE  CALLED

Page 39: Peru:

Location: Departament of Ica, Province of Pisco.

Estimated investment: US$ 350 Million.Concession type: Cofinancing.

Current status: Final stage of the feasibility study.Deadline to be Short listed: III Q 2011Award date: IV Q 2011

WATER  REINFORCEMENT  OF  PISCO  RIVER  –RIO  SECO  RIVER  BASIN  

POR CONVOCAR TO BE  CALLED

Description:Collection and regulation of Pisco River water surplus to achieve the

water flow stabilization of Pisco valley and the recharge of theground water source of the inter valley where the Villacuri and‐Lanchas irrigations are located, in order to permit thesustainability of production activities of Pisco Viejo valley andVillacuri and Lanchas irrigations, which are exclusively irrigatedwith ground water.

Ica

Page 40: Peru:

DEVELOPED   CHOCLOCOCHA   PROJECT

Location: Department of Huancavelica, Provinces ofHuaytara and Castrovirreyna, Districts of Santa Ana andPilpichaca.Description : The project comprises the implementation ofthe regulation system and current connection with theconstruction of Tambo dam and Ingahuasi collecting watercanal of 72 km length; as well as the operation andmaintenance of the whole system. The goal of the projectis to achieve the water reinforcement of Ica Valley, inorder to provide growth and sustainability to the largestagro export center of the country located in said Valleyand the operation and maintenance of the whole system.

Estimated Investment: US$ 130 million.Concession Type: Co financingProcess status: Waiting for the viability from the SNIP .Deadline to be Short listed : III Q 2011Award Date: IV Q 2011

TO BE  CALLEDPOR   CONVOCAR

Huancavelica

Page 41: Peru:

MAJES I (1000 Ha) LAND SALE

Location: Department of Arequipa.Description : Sale of 02 plots of unsuitable lands with thepossibility of obtaining rights of use of water resourcesof up to 13500 m3/ha/year for approximately 500 haeach.The plots are located in the lower area of Pampa deMajes, at Km 890 of the South Pan American Highway,‐between Majes and Siguas valleys.The Award, grants to the respective bidders the right toexercise the Option to Purchase another lot next doorfrom similar extension, on condition to obtain water fromMajes irrigation surpluses (valid for up to 03 years)

.••

Estimated Investment: US$ 5 million.Modality: Public Auction.

Award Date: July 2011

TO BE CALLEDPOR   CONVOCAR

Arequipa

ProyectoMajes-Siguas

Page 42: Peru:

Estimated   Investment

900

110

110

200

100

90400200

15001300

100

100

17.8

Expected dateof  Award

03.24.2011

03.31.2011

04.07.11

III Q 2011

05.05.11

05.19.11IV Q 2011IV Q 2011IV Q 2011IV Q 2011

IV Q 2011

IV Q 2011

05.15.2011

PORTFOLIO PROJECTS  2011

Sector  /  Project

EnergyEnergy from Hydroelectric Power Stations 500 Mw.* Transmission Line Trujillo – Chiclayo 500 KV and ‐associated sub stations*

Cold Reserve: 200 MW Plant of Eten (Lambayeque)*‐Transmission Line Moyobamba – Iquitos*

Transmission Line Cajamarca – Caclic – Moyobamba*

Supply system of LPG for Lima and Callao*Bayovar oil hub Supply system of LNG for domestic market *Gas pipeline to Trujillo (Natural Gas) *South energy node*Distribution system of natural gas for the center –north *Distribution system of natural gas for the South *Penitentiary  FacilitiesElectronic Vigilance Service

* Projects declared of National need and prioritized for 2011.

Page 43: Peru:

Location: Nationwide.

Description: The project comprises the supply of energyand power to the National Interconnected Electric System(SEIN), guaranteed by the construction of newhydroelectric power stations which will begin operationson 2016.

• Estimated investment (IVA not included): US$ 900Million.

• Period of supply contracts: 15 years.• Competition factor: Lowest prices for energy.

Current Status: The Tender Documents and contract ’ssecond draft are published on Proinversion’s web site.

Award date : March 24, 2011.

ENERGY  FROM  HYDROELECTRIC  POWER STATIONS 500 Mw.  

The  Call for   Tenders  was  made

Page 44: Peru:

Location: La Libertad and LambayequeDescription: Grant in concession the design,financing, building, operation and maintenance ofTrujillo – Chiclayo 550 Kv transmission line (capacity of700 MVA, 340 Km. length aprox), aimed to increasethe capacity of electric energy transmission towardsthe northern part of the country.

• Estimated investment (VAT not included): US$110 Million.

• Concession period: 30 years plus the constructionperiod (30 months approx.)

• Competition factor:The lowest service total cost.Current Status: The Tender Documents and Contract ’sfirst version are published on Proinversion’s web site.Award date: March 31, 2011

TRUJILLO  – CHICLAYO  500  KV   TRANSMISSION LINE  AND  ASOCIATED  SUB   STATIONS

The Call forTender was made

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COLD   RESERVE  (200 MW,  1   DUAL   THERMAL PLANT  OF  SIMPLE  CYCLE)

Location: Locality of Eten, Region of Lambayeque.

Description: Power and energy supply to national grid as aCold Reserve to cover emergency periods.

To guarantee the supply the design, financing,construction, operation and maintenance of a newthermoelectric dual plant (diesel and natural gas) isconsidered. Located in the locality of Eten Region of‐Lambayeque (northern Peru) with a capacity of 200 MW.

• Estimated Investment (VAT not included): US$ 110Million.

• Concession  period: 20 years + construction period (24 months)

• Competition factor: Lowest remuneration per poweroffered.

Current Status: The tender documents are published onProInversion’s web site.

Award date: April 07, 2011.

The  call for   tender  was  made

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Location: Regions of Loreto and San Martín.Description: The Project will grant in concession thedesign, financing, construction, operation and maintenanceof Moyobamba – Iquitos 220 kV transmission line, in orderto increase the electricity transmission capacity to thewestern part of the country (regions of Loreto and SanMartin) and develop the interconnection of the electricitysystems in these regions with the National Grid.

• Estimated Investment (VAT not included): US$ 200Millon.

• Concession Type : Self sustaining.

• Concession period: 30 years plus the constructionperiod (40 months).

• Competition factor: The lowest service total cost..

Current Status: Hiring of the technical feasibility study

Deadline to be shortlisting: II Q 2011

Awad date: III Q 2011

TRANSMISSION LINE MOYOBAMBA – IQUITOS220 kV

TO BE CALLED

Page 47: Peru:

Location : Cajamarca, Amazonas and San Martín .Description: To grant in concession the design, finance,construction, operation and maintenance of theTransmission line of Cajamarca Norte – Caclic 220 kV ofmore than 300 km length.The implementation of new sub stations in Caclic(Chachapoyas) and Moyobamba.The expansion of the sub stations Cajamarca Norte.

• Estimated Investment (VAT not included): US$ 100Million.

• Concession period: 30 years plus the constructionperiod (28 months)

• Competition factor: The lowest service total cost.Current status: The Tender Documents and contract ´sfirst draft are published on Proinversion’s web site.Deadline to submit a short listing request: March 30,2011Award date: May 05, 2011

TRANSMISSION  LINE  CAJAMARCA– CACLIC  –MOYOBAMBA  220  kV

The  Call for   Tender  was  made

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Location: Southern zone of Lima

Description: LPG transport system from the producer facilities toLima province border.The project comprises the construction of:•A pipe of 250 km approximately from Pisco to terminal locatedbetween Lurin and Conchan. An initial transport of 1,000tonnes of LPG daily is estimated.•A terminal for storage and attention to be placed betweenLurin and Conchan.•Pumping station, measurement equipment, valve, pig trapsand communication equipments.

• Estimated investment (VAT not included): US$ 90 Million• Concession period: 20 years plus the construction period (28months).• Competition factor: The lowest service total cost .

Current status: The Tender Documents and the contract ´s firstversion are published on Proinversión’s web site.Deadline to submit a short listing request: March 31, 2011Award date: May 19, 2011

SUPPLY  SYSTEM  OF  LPG  FOR LIMA   AND  CALLAO

The  called for   tenders  was  made

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BAYOVAR  OIL   HUB   

Location: Province of Sechura, Department of Piura.

Description:The promotion process comprises the design, financing,construction, operation and maintenance of a liquidloading dock and storage tanks for crude and oil products.

The location of these facilities would be in the Bay ofBayovar taking into account its favorable location on thePacific Coast and its capacity to received large ships

Estimated Investment: US $ 400 Million.

Deadline to be short listed: III Q 2011

Award date: IV Q 2011

TO BE  CALLED

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Location: Province of Cañete, Department of Lima.

Description: The system will allow the use of liquid naturalgas and its regasification for emergency periods, using theexisting pipeline to transport natural gas when needed.

Estimated Investment (Vat is not included): US$ 200Million.

Concession period: 30 years.

Competition factor: Lowest service cost.

Current status: The financing type to be defined .

Deadline to be shortlisted: III Q 2011

Award date: IV Q 2011

SUPPLY SYSTEM OF LNG FOR DOMESTICMARKET

TO BE CALLED

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Location: Center – Highlands / North Coast‐Description: The project comprises the design,construction, operation and maintenance of thenatural gas transportation system which will allow tosupply the cities of Ayacucho, Huancayo, La Oroya,Tarma, Chimbote and Trujillo.

• Estimated Investment: US$1,500 Million.

• Concession term: 30 years plus the constructionperiod ( 40 – 48 months)

• Competition factor : The Lowest gastransportation service cost.

• Modality: Comprehensive project bid.

Deadline to submit a short listing request: III Q 2011

Award date: IV Q 2011

GAS  PIPELINE  TO TRUJILLO (NATURAL GAS)   

TO BE  CALLED

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SOUTH  ENERGY  NODE

Location: South of Peru .

Description: The promotion process comprises the design,financing, construction, operation and maintenance ofthermal plants using natural gas from the southern Andeanregion and operating in combined cycle can generateelectricity for export purpose. The power to be installedborders 1,500 MW.

Referential investment  in generation:   US$ 1,300 Million. Current   status : The technical studies are being carried out.

Deadline to be shortlisted: III Q 2011

Award date: IV Q 2011

TO BE  CALLED

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Cities to be supplied: Ayacucho, Huancayo, La Oroya,Chimbote and Trujillo.

Description: Natural gas distribution system that comprisesland transportation of liquid state natural gas from‐Melchorita plant—south of Lima—to the borders of cities tobe supplied, re gasifying it at these points, and then‐supplying natural gas to the final user through gas pipelines.

Estimated Investment (VAT not included): US$ 100

Million.

Concession type: Self sustaining.

Concession period: 30 years.

Competition factor: Commitment of larger number of

users connected.

Current status: The technical studies are being carry out,and the commitment of liquid gas supply between State andRepsol pending to be signed.

Deadline to be shortlisted: III Q 2011

Award date: IV Q 2011

SYSTEM GAS DISTRIBUTION SYSTEM FORTHE CENTER – NORTH

TO BE CALLED

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Cities to  be  supplied:  Cusco, Juliaca, Puno, Arequipa, Moquegua and Tacna.

Description: Natural gas distribution system that comprisesland transportation of liquid state natural gas from Melchorita‐plant—south of Lima—to the borders of cities to be supplied,re gasifying it at these points, and then supplying natural gas‐to the final user through gas pipelines.

Estimated Investment (Vat not included): US$ 100

Million.

Concession type: self sustainig.

Concession period: 30 years.

Competition factor: Commitment of larger number of

users connected.

Current status: The technical studies are being carry out, andthe commitment of liquid gas supply between State and Repsolpending to be signed.

Deadline to be shortlisted: III Q 2011

Award date: IV Q 2011

NATURAL GAS DISTRIBUTION SYSTEM FORTHE SOUTH

TO BE CALLED

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Location: Lima.

Description: The project comprises the provision of PersonalElectronic Monitoring Service for 2000 processed and /orsentenced of the Judicial District of Lima, North Lima, SouthLima and Callao.

• Estimated Investment (VAT not included): 17.8 Million

• Competition factor: To be defined

Current status: The call for tender was made on December28, 2010. The tender documents and the contract’s seconddraft are published on ProInversión’s web site.

Deadline to be short listed: Up to April 01, 2011.

Award date: 05.15.2011

PERSONAL ELECTRONIC VIGILANCESERVICE

The Call forTender was made

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Estimated   Investment  

To be defined

To be defined

9.3

119

To be defined

20

80010.6

To be defined

Expected dateof  Award

To be defined

To be defined

03.25.2011

II Q 2011

To be defined

03.10.11

III Q 2011To be defined

04.29.2011

PORTFOLIO PROJECTS  2011

Sector  /  Project

Railways Cajamarca – Bayovar railway

Transcontinental railway “Brazil – Peru” Atlantic Pacific (FETAB)‐Real  Estate Former tourist hotels of Ica, Iquitos, Huaraz, Monterrey and Chimbote Lobitos Beach

Consolidated Fund of Retirement Reserve.

TourismEl Chaco La Puntilla Lot D tourist project

San Lorenzo Island and El Fronton Island *Kuelap Cable carCapital MarketsConsorcio Hotelero del Norte

* Projects declared of National need and prioritized for 2011.

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Estimated investment: US$ 20 million.

Modality : Comprehensive project bid

Deadline to be shortlisted: February 18, 2011

Award date: March 10, 2011.

LOT  D    CHACO    LA   PUNTILLA ‐ ‐

The Call forTender was made

Location: Department of Ica, Province of Pisco,District of Paracas.

Description: The project comprises the design,financing, construction and sale of a high standardvacational condominium to be developed in an areaof 181,854.33 m2 located in area known as Chaco ‐La Puntilla, district of Paracas.

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SAN  LORENZO  ISLAND   – EL   FRONTON  ISLANDS  

Location: San Lorenzo Island – El fronton Island,Constitutional Province of Callao.

Description: The project involves the incorporationof San Lorenzo and el Fronton Islands to the urbanarea of Callao and Metropolitan Lima, by developingan urban project based on zoning that respectscultural and natural heritage located in the Islands.Soil uses, urban and edificatory relevant parametersmust be respected as well. In addition, the mostsuitable solution for access to the Island must beconsidered.

Estimated Investment : US$ 800 Million Modality: Public bid Award date: III Quarter 2011.

TO BE  CALLED

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wharf of handcraft fishing and its service unit.

• Investment amount: US$119 Million*

LOBITOS  BEACH

TO BE  CALLED

Location: Region of Piura, Province of Talara,District of Lobitos.

Description: Tourist project development in a lot70 has, with 1.8 Km approximately of land with asea view front.

Tourist complex composed by a group of hotelsand vacation rental homes. All those would beserved by a local mall. It is considered to keep the

PlayLobitos

• Modality: Comprehensive project bid.

• Award date: II Quarter 2011.

Includes land, urban habilitation and buildings.

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Location: The former tourist hotels are located inChimbote, Iquitos, Huaraz, Monterrey and Ica .

Description: The project involves the sale of assets(hotels units) of Former tourist hotels, described asfollows:

:

Estimated Inverstment: US$ 9.3 Million.

Modality: Public Bid.

FORMER  TOURIST  HOTELS

The call  for   tenders  was  made

Participation fee: Up to 03.24.2011.

Public auction date: 03.25.2011.

Comprende el terreno, edificaciones, obras complementarias, equipos, maquinaria e mobiliario.

Hotel

Chimbote former tourist hotel

Iquitos former tourist hotel

Huaraz former tourist hotelMonterrey former tourist hotel

Ica former tourist hotel

Land area

3,867 m2

2,066 m2

29,875 m227,765 m2

15,000 m2

Contructed area

5,038 m2

5,028 m2

9,928 m23,064 m2

8,127 m2

Base   price

US$ 1,945 M

US$ 1,112 M

US$ 3,133 MUS$ 696,000

US$ 2,455 M

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CONSORCIO HOTELERO DEL NORTE S.A.

Location: In the center of Chiclayo city, 10 minutesfrom the airport.

Description: The project implies the sale of 1’836,890shares of Chiclayo hotel, corresponding to 13.12% ofthe State participation, FONAFE is currently the owner.

The land has 8,452 m2 and the building has 7 floorsand 129 rooms, served by restaurants, coffee bar,conferences rooms, outside area for social events,business center, spa and a fitness center.

Base price: To be defined

Modality: Public Bid.

Award date: April 29, 2011.

TO BE CALLED

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Estimated investment  

74844.116.07111149

To be defined

22.1129.4

160

To be defined

To be defined

To be defined

Expected dateof  Award

I Q 2011II Q 2011IV Q 2011III Q 2011IV Q 2011

IV Q 2011

IV Q 2011To be defined

To be defined

06.09.2011

06.23.2011

IV Q 2011

PORTFOLIO PROJECTS  2011

Sector  /  Project

PortsNorth Multipurpose Terminal of Callao*Yurimaguas Port Terminal *Pucallpa Port Terminal General San Martín Port Terminal*San Juan de Marcona Port Terminal *Navigable River Routes, first stage: Yurimaguas ‐Iquitos*Iquitos Port Terminal *Salaverry Port Terminal *SanitationDesalination seawater plant Aguas de Lima Sur II *‐TelecommunicationBand 10.15 10.30 GHz and 10.50 10.65 GHz ‐ ‐Information Technology for the development of Candarave CommunitiesDevelopment of Broadband and extension of optical fiber in rural areas

* Projects declared of National need and prioritized for 2011.

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NORTH MULTIPURPOSE  TERMINAL  OF  CALLAO  PORT  

Location : Port of Callao, 15 km from the city of Lima.

Description: To grant in concession the Northmultipurpose terminal (former docks 1, 2, 3, 4, 5, 7and 11) of Callao port with the aim of itsmodernization. The concessionaire must fulfill theminimum service standards and must sign the jointventure contract with ENAPU S.A. among othercommitments to be stated in the concession contract.

Estimated Investment (VAT included): US$ 748Million*.

Concession Term : Maximum 30 years.

Modality: Comprehensive project bid. Self sustainingand onerous.

Current status: The contract ’s final version approvedby Committee and the replies to queries made to theTenders Documents are published on ProInversion’sweb site.

Short   listing bidders: ‐ On March 03, 2011 the shortlisting results were announced individually to eachbidder.

Award date: I Q 2011.

The Call forTender was made

* Correspond to stage 1- 5

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YURIMAGUAS  – NUEVA   REFORMA  PORT  TERMINAL 

The Call forTender was made

Location: The new port terminal will be located on theleft bank of Huallaga river, locality of Nueva Reforma, 20kilometers downstream from the current port.Description: The concession comprises the design,construction, financing, maintenance and operation ofthe new Yurimaguas P.T.

Estimated Investment (VAT included): US$ 44.1

Million.Concession term: 30 years.

Modality:  Co financed. Comprehensive project bid. ‐

Current status:The delivery of the contract ’s final version approved bythe ProInversion’s Steering Council, is scheduled forFebruary 03, 2011.Deadline to submit a short listing request: March 06,2011.Award date: II Q 2011.

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PUCALLPA  PORT  TERMINAL 

Location : Ucayali River in Callería district, CoronelPortillo province of Ucayali region.

Description: The project comprises the design,construction, partial financing, maintenance andoperation of Pucallpa Port Terminal.Estimated investment (VAT is not included): US$ 16.07Million.Concession term: 15 years but this can be extendedup to 30 years.Modality Comprehensive Project Bid. Co financed.‐

Current Status: The Tender Documents and contract ’ssecond draft are published on Proinversion’s web site.To date the feasibility study is being modified.

Award date : IV Q 2011.

The Call forTender was made

Page 66: Peru:

Location: Ica Region, Pisco province.

Description: The project comprises the design,construction, financing, maintenance andoperation of General San Martín port terminal.

Estimated investment: US$ 111 Million.Concession period: 30 years.Modality: Comprehensive project bid.

Current status: The Tender documents and thecontract ’s second draft are published onProinversion’s web site.

Award date: III Q 2011

GENERAL  SAN  MARTÍN  PORT  TERMINAL 

The  Call for   Tender  was  made

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Location: Region of Ica.

Description: The project comprises the design,construction, financing, maintenance and operationof a new port terminal.

First stage: The construction of a dock servingmineral ores and its equipment is considered.

• Estimated Investment (VAT not included):US$ 149 Million.

• Concession term: 30 years.

• Modality: Under evaluation

Current status: Under evaluation.

Award: IV Q 2011

SAN  JUAN DE  MARCONA  PORT  TERMINAL

TO BE  CALLED

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Location: Huallaga, Marañón and AmazonasRivers.

Description: Development of dredging works,rivers information signs, in order to assure thenavigability and therefore the traffic in the portterminals of Yurimaguas and Iquitos.

Current Status: The feasibility study “Upgradingand Maintenance of Navigability Conditions inUcayali, Huallaga, Marañón and AmazonasRivers” is being carried out.

Award date: IV Q 2011.

NAVIGABLE RIVER ROUTES,  FIRST STAGE:  YURIMAGUAS  IQUITOS  RIVER ROUTES‐

TO BE  CALLED

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IQUITOS  PORT  TERMINAL

Location: Itaya river, 2 km upstream of itsintersection with the Amazonas river, in Iquitos city,Maynas province in Loreto department.

Description: The project comprises themodernization, partial financing, maintenance andoperation of the Iquitos port terminal.

• Estimated investment (VAT not included): US$22.1 Million.

• Concession term: To be defined, 30 yearsMaximum.

• Modality: Co financed. Comprehensive Project‐Bid

• Current status: To be called.

Award date: IV Q 2011

TO  BE  CALLED  

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Estimated investment : US$ 129.4 Million,VAT is not included.Modality: Comprehensive project Bid. Self ‐sustaining.Concession period: Maximum 30 years.

Current status: To be called. Award date: Under evaluation.

SALAVERRY  PORT  TERMINAL

TO  BE  CALLED  

Location: La Libertad Region – Trujillo province. Description: The project comprises the design,

construction, financing, maintenance andoperation of the port terminal.

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SEAWATER  DESALINATION  PLANT  ‐AGUAS  DE  LIMA   SUR  II

Location: District of the southern Lima

Description: The project comprises the design, financing, building,operation and maintenance of a seawater desalination plant and astorage system and main supply of drinkable water.

The project comprises: Seawater desalination plant with a capacity of 100,000 m3/day 60 Km. main distribution pipeline of water 7 new tanks and interconnections with the existing tanks

Concesion term: 23 years

Estimated Investment( VAT not included): US$ 160 Million.

Competition factor: Lowest price per cubic meter of desalinatedwater provided.

Current status: The deadline to submit an expression of interestfrom third parties is April 08, 2011

Award date : To be defined .

The  call for   tendersPOR   CONVOCAR  was  made  

Page 72: Peru:

Location: In the districts of Camilaca, Cairani, Huanuara,Candarave, Quilahuani and Curibaya, all of them in the Provinceof Candarave, Region of Tacna.

Description: The goal of the project is to increase theinformation technology and communication in 24 towns locatedon the Province of Cadarave, Tacna.

The services to be requested are:

• Fixed telephony : 8 towns benefited

• Public telephony: 23 localities benefited.

• Internet booth: 23 localities benefited

• Internet at schools: 22 localities benefited.

Estimated Investment: To be defined.

Concession type: Co-financed. It will have a non refundablefinancing from FITEL.

Current status: Tender Documents are being elaborated.

Award date: 06.23.2011

TO BE CALLED

INFORMATION TECHNOLOGY FOR THEDEVELOPMENT OF CANDARAVE COMMUNITIES

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DEVELOPMENT   OF  THE BROADBAND  AND  EXTENSION  OF  THE  OPTICAL   FIBER  IN RURAL   AREAS 

Location: Nationwide. More than 5000 km of optical fiberwill be developed.

Description: The project goal is to universalize the broadband in Peru: It will be divided into 3 sub projects.

• North project: Regions of Amazonas, Ancash more than 1,600towns will be benefitedde Amazonas, Ancash Cajamarca, LaLibertad, Lambayeque and San Martín. Close to 1,600 towns willbe benefited.

• Center project: Regions of Ancash, Lima, Huánuco Huancavelica,Junín, Pasco, La Libertad, Loreto and Ucayali. Close to 1, 800towns will be benefited.

• South project: Regions of Arequipa, Ayacucho, Apurimac, Cusco,Huancavelica, Moquegua, Puno and Tacna. Close to 1, 800towns will be benefited.

• Estimated Investment (VAT not included): To be defined

• Concession type: Co-financed. It will have a non refundablefinancing from FITEL..

• Current status: South project: under feasibility reformulation byFITEL in the Public Investment National System (SNIP)

• Center North and Center South projects: under feasibilityreformulation by FITEL in (SNIP)

Award date: IV Q 2011

Center coverage

Southcoverage

TO BE CALLED

Northcoverage

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Estimated   Investment

To be defined

Private Initiative

To be defined

To be defined

To be defined

To be defined

Expected dateof  Award

To be defined

Under evaluation

To be defined

To be defined

To be defined

To be defined

PORTFOLIO PROJECTS  2011

Sector  /  Project

Land transport 

Road Panamericana Sur : Ica frontier with Chile*

Road Autopista del Sol Section Sullana Frontier ‐with Ecuador. 275 km*

Highway IIRSA Centro Multimodal Axis Port of ‐Callao – Port of Pucallpa*

Longitudinal in the Forest in sections to beestablished by the MTC *Longitudinal in the Highland in sections to beestablished by MTC *

Transandean tunel (Prov. of Yauli, Dpt of. Junín)*

* Projects declared of National need and prioritized for 2011.

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Location: Regions of Ica, Arequipa, Moquegua andTacna.

Description: The project starts in Ica and finish in thefrontier with Chile. Its path will benefited Nazca ‐

Modality: Comprehensive project Bid

Concession period: To be defined

Current status: Under evaluation by the Ministry ofTransport and Communication MTC‐

Award Date: To be defined.

ROAD   PANAMERICANA SUR:  ICA   – FRONTIER WITH  CHILE 

Tacna

Frontier with Chile

Dv Arequipa

Dv Moquegua

Dv Ilo

Camana – Moquegua – Ilo and Tacna among others. Estimated Investment: To be defined

Camana

Ica TO BE CALLED

Nazca

Page 76: Peru:

Location: Regions of Piura and Tumbes.

Description: Its route begins in Sullana and ends inthe frontier with Ecuador (To be defined if it ’s inAguas Verdes or Puente Internacional, or both).Additionally, it will benefit Talara, MáncoraZorritos, Zarumilla and Tumbes cities, amongothers.

Current status:A Private Initiative was presented and it is underevaluation by The MTC (Ministry of Transport andCommunication) with the aim to defined if it isgoing to be declared of interest.

Award Date: To be defined.

ROAD   “AUTOPISTA   DEL   SOL   “SECTION:   SULLANA– FRONTIER WITH ECUADOR

Talara

Zarumilla

• TUMBES

Sullana

• PIURA

PuenteInternacional

TO BE CALLED

Page 77: Peru:

TO BE CALLED

UCAYALI HUÁNUCO

PASCO

JUNÍN LIMA

IIRSA CENTRO HIGHWAY: MULTIMODALAXIS CALLAO PORT – PUCALLPA PORT

Location: Departaments of Lima, Pasco, Huanuco andUcayali.

Description: Highway concession from the Port of Callao toPuente Ricardo Palma and from Dv. Cerro de Pasco to thePort Pucallpa.

The project described, along with the section II of the IIRSACentro already granted in concession (Bridge of RicardoPalma-La Oroya-Huancayo and La Oroya-Detour. Cerro dePasco) composed IIRSA Centro highway.

Estiamted Investment: To be defined.

Modality: Comprehensive project bid.

Concession type: BOT concession

Concession term: To be defined.

Current status: Under evaluation by the Ministry ofTransport and Communication - MTC.

Award date: To be defined.

IIRSA Centrohighwaysection 2

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• Current status: Under evaluation by theMinistry of Transport and Communication ‐MTC.

Award date : To be defined.

HIGHLANDS  LONGITUDINAL

TO BE CALLED Description: Construction of the highway on

sections established by the MTC with the goal tointerconnect Peruvian highlands with the regionsof: Piura, Cajamarca, La Libertad, Ancash,Huanuco, Pasco, Junín, Huancavelica, Ayacucho,Apurímac, Cuzco and Puno. Likewise it will allowthe lay out of pipelines for the installation ofoptical fiber corresponding to this project.

• Estimated Investment: To be defined.• Concession period: To be defined..

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TO BE CALLED

FOREST  LONGITUDINAL

Description: Construction of the highway, onsections established by the MTC, in order tocomplete the sections built in the northern andcentral part of the country allowing theintegration of the regions: Cajamarca, Amazonas,San Martín, Huanuco, Pasco, Junin , Cuzco andMadre de Dios.• Estimated Investment: To be defined.• Concession period: To be defined.• Current Status: Under evaluation by the

Ministry of Transport and Communication ‐MTC.

Award date To be defined.

Page 80: Peru:

TO BE CALLED

location: Departament of Junín Description: As part of the drive rail system, theconstruction of the Trans Andean tunnel of 23.2kilometers long is foresees, it will make much easy theroute of central railway to avoid curves and zigzags. Inthis sense, the trip Lima Huancayo (Junín), Lima ‐ ‐Cerro de Pasco and Lima La Oroya (Junín) will be‐done in less time compared with the actual.• Estimated Investment : To be defined.• Concession period: To be defined.

• Current status: Under evaluation by the Ministryof Transport and Communication MTC.‐

Award date: To be defined.

TRANS  ANDEAN  TUNNEL